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Thursday, December 31, 2009

Nicolas Cage Hit With $3M Lawsuit...updated

Nicolas Cage's financial difficulties are getting worse, but not as bad as previously reported.

The star has been struck with another lawsuit, but while on Saturday it was reported that an investment company was suing Cage for $36.7 million by People, and picked up by Access, it appears the lender is actually seeking around $3 million from the star. People's original report also claimed that the financially troubled actor had been accused of fraud, which has since been determined was incorrect.

According to the lawsuit, filed in Los Angeles Superior Court on December 18, and obtained by Access Hollywood, Red Curb Investments is suing the actor for at least $2,943,486.64 related to a loan which Red Curb claims Cage is in default on.

Red Curb is seeking $1,093,216.97 for what they claim is an unpaid balance and accrued interest over default on a promissory note related to an original figure of $3.5 million, loaned in July of 2007. Additionally, according to the suit, Red Curb are asking a court to award them $1,850,269.67 related to a balloon note (a type of loan extension) with a guaranty of recourse obligation they claim was signed by the actor himself, and which they claim was due in August 2008.

The investment company is also suing for collection expenses, attorneys' fees and costs related to the promissory notes and guarantees.

Cage himself is only listed on some of the claims filed in the lawsuit, but other claims - including for fraud - are not directed at the actor.

Instead, Red Curb levied those claims against a former business manger of the actor, a mortgage broker, a financial group and a real estate trust.

"[Red Curb] was assured that Cage had substantial assets consisting of high-end residential property, yachts, airplanes, antiques, custom automobiles, jewelry, furs, and other valuable assets sufficient to assure repayment of the... loan," the investment company noted in their filing.

"The representations made concerning Cage's financial condition were false and were made with the intent to deceive [Red Curb] about Cage's true financial condition," the paperwork reads. "By the summer of 2007, Defendants were aware that Cage was hopelessly in debt, yet continued to live in a lavish manner."

Red Curb is suing the other defendants for a minimum of $25 million.

The defendants do not yet appear to have filed a response in court, but a case management conference has been set for April 7, 2010.